Unilever Global Strategy Council Summit Recap 1. Iden’fied Growth Priori’es 2. Growth Priori’es Translated to Investment Plans 3. Role of M&A for Future of Unilever 4. M&A Group Recommenda’on & Presenta’on
Unilever Global Strategy Council
Summit Recap
1. Iden'fiedGrowthPriori'es2. GrowthPriori'esTranslatedto
InvestmentPlans3. RoleofM&AforFutureofUnilever4. M&AGroupRecommenda'on&
Presenta'on
UnileverHighGrowthPriori'es
Deodorants,Skin,Hair
Savoury,IceCream,Tea
VitalitywithinFoods
HomeCare
Russia,China,andLocalaccess
Transla'ngGrowthPriori'esIntoInvestmentPlans
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CurrentInvestmentStatus
RoleofM&AforFutureUnileverGrowth
15
keybattlegrounds
defend andgrow profitably
generatecash
investto grow
Role of M&A
competitiveness
attractiveness
weak / contested clear leadership
highgrowth
lowergrowth
top prioritytransform market share
towards leadership
transform or dispose
augment share,extend strongholds,
exploit hotspots
Unify behind a shared view of the business and business model
Focus strategic choicesCompete to win in business of focus
Deliver superior value over sustained period of time
Build and sustain a portfolio of businesses that
! are more weighted to market leadership positions
! play in higher growth space
More value from the portfolio
Compe''veness
APrac'veness
GrowthPriori'essa'sfiedbyHain
Deodorants,Skin,Hair
Savoury,IceCream,Tea
VitalitywithinFoods
HomeCare
Russia,China,andLocalaccess
*ThecolorGREYrepresentsunsa'sfiedgrowthpriority
RoadMap
• CulturalFit/StrategicFit• Strategies• PostAcquisi'onValue• Offer• Logis'csofAcquisi'on
Cultural/StrategicFit
• Be(erFutureforOurChildren• HealthierFuture• MoreConfidentFuture• Be(erFutureforOurPlanet• Be(erFutureforFarming/Farmers
• HealthyProducts• HealthyPackaging• HealthyEnvironment• HealthyCommuniCes
Sustainability
• SustainableLivingPlan• CleanerPlanetTogetherIniCaCve• Fairtradevanillaandalmonds• Sustainableforestproject
• Reducedpackagingby5%• DecreasedCO2by492.2tons• AwardwinningBelgium,UK,Canadamanufacturingplants
SocialResponsibility
• Flora/Becelmargarine• VaselineSkinCareFoundaCon• Lifebuoysoap• Dove’sCampaignforRealBeauty• Safedrinkingwaterto500millionpeopleby2020• WorldFoodProgramme
• NaturalandOrganic• Over400glutenfreeproducts• Reducingcalories,fat,sodium,sugar• 97%productsnon‐GMOcerCfied• FeedtheChildren,SecondHarvest,BoweryMission
Strategies
1. ExploitourcurrentglobalfootprinttoencourageexpansionofHainCeles'alintointerna'onalmarkets.
2. Gainaddi'onal1%revenuegrowththroughincorpora'onofHainfoodandbeveragesegments.
3. DiversifyUnileverproductporOoliothroughincorpora'onofnaturalandorganicpersonalcarelines.
4. CreateHainadver'singprofileequivalenttorestofUnileverfamilyofbrands.
ExploitourGlobalFootprint
• Currently17.2%ofnetsalesareinUS• Expected7.03%posiCveincreaseUnileverUSsales
• 14%ofsalesinInternaConalmarket• Expected36%growthwithexpansionintoMiddleeast,Russia,Asia,Africa,India
GrowthinFoods&Beverages
• AccomplishourSustainabilityGoal• Tapintoorganicfoods,teamarket• Revenuegrowthincrease1%withacquisi'on
DiversifyPersonalCarePorOolio• AHainCeles'alstrength• Decreasecompe''oninU.S.• Unilevermen’spersonalcaregainingprominenceinU.S.• 0.5%increaseingrowthrate
ExpandHainAdver'singProfile
• Necessary increase of Hain Celestial’s marketing budget • Results in 2% increase in operating expenses • Will stimulat future growth in brands of both companies
PostAcquisi'onValue
$25.00
$50.00
$75.00
$100.00
$125.00
$150.00
$175.00
$200.00
$225.00
$250.00
$275.00
EnteringValue GlobalFootprint Foods&Refreshments PersonalCare Marke'ng&Advert.Cost
TheOffer$3.62B
Stock$2.53B
Cash$1.09B
DisposiConofBoard/Employees
Togetherwecan…Enternewforeignmarkets
Strengthenourbrands
Con'nuetobesociallyresponsibleIncreaseourvalue
Discussion&Delibera'on
Appendices
AppendixA
2007 2008 2009 2010 2011 2012UN Growth Avg
HAIN Growth Avg
Revenue $53.45 $53.89 $52.96 $58.87 $61.81 $64.16
YOY Growth 1.01 0.98 1.11 1.05 1.04 1.04 1.08
Cost of Goods Sold (COGS) incl. D&A $27.53 $28.61 $27.60 $30.90 $37.40 $40.52YOY Growth 1.04 0.96 1.12 1.21 1.08 1.08 1.09
Operating Exp $16.93 $16.17 $16.17 $17.85 $13.86 $12.66YOY Growth 0.96 1.00 1.10 0.78 0.91 0.96 1.04
EBITDA $8.99 $9.11 $9.19 $10.12 $10.55 $10.98YOY Growth 1.01 1.01 1.10 1.04 1.04 1.04 1.14
2012 2013 2014 2015 2016 2017TV in Perpetuity
TV (Using Multiple)
Revenue $64.16 $66.60 $69.14 $71.77 $74.51 $77.35Growth 1.04
CGS $40.52 $43.90 $47.57 $51.54 $55.84 $60.50Growth 1.08Operating Exp $12.66 $12.13 $11.63 $11.16 $10.70 $10.26growth 0.96EBITDA $10.98 $10.57 $9.94 $9.08 $7.97 $6.59 $87.92 $89.51Realized Growth 0.96 0.94 0.91 0.88 0.83PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697 0.697
PV of Cash Flow $10.98 $9.83 $8.60 $7.31 $5.97 $4.59 $61.24 $62.35
DCF $97.55 $98.66
Unilever Stand-Alone DCF
Unilever Historical Growth Analysis
AppendixB
2012 2013 2014 2015 2016 2017TV in Perpetuity
Revenue $64.16 $68.61 $71.40 $74.30 $77.33 $80.47growth (anticipated) 1.04 1.07 1.04 1.04 1.04 1.04Revenue $64.16 $69.89 $74.13 $78.63 $83.40 $88.46growth (+2% over anticipated) 1.04 1.09 1.06 1.06 1.06 1.06Revenue $64.16 $67.33 $68.72 $70.14 $71.59 $73.07growth (-2% under anticipated) 1.04 1.05 1.02 1.02 1.02 1.02
CGS $40.52 $44.38 $48.08 $52.09 $56.44 $61.15growth (anticipated) 1.08 1.10 1.083 1.083 1.083 1.083Operating Exp $12.66 $12.13 $11.63 $11.16 $10.70 $10.26growth (anticipated) 0.96 0.96 0.96 0.96 0.96 0.96
EBITDA $10.98 $12.10 $11.69 $11.06 $10.19 $9.07 $120.90realized growth 1.10 0.97 0.95 0.92 0.89EBITDA $10.98 $13.38 $14.42 $15.38 $16.27 $17.06 $227.44realized growth 1.22 1.08 1.07 1.06 1.05EBITDA $10.98 $10.81 $9.00 $6.89 $4.45 $1.66 $22.19realized growth 0.98 0.83 0.77 0.65 0.37
PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697
PV of Cash Flow $10.98 $11.25 $10.11 $8.90 $7.63 $6.32 $84.26PV of Cash Flow $10.98 $12.44 $12.47 $12.38 $12.18 $11.89 $158.53PV of Cash Flow $10.98 $10.06 $7.79 $5.55 $3.34 $1.16 $15.47 Net Change
DCF $128.48 $30.93DCF $219.90 $122.36DCF $43.36 -$54.19
Unilever-Hain DCF (Projected growth through global expansion of all Hain product lines)
$1.88Revenue for 2013 includes annual data for UN with addition of projected Hain revenues:CGS reflects an initial increase of 36% in cost of goods sold within Hain segments as a result of expansion into UN Asia/AMET/RUB markets
Notes & Assumptions:
AppendixBRegion 2012 2013 2014 2015 2016 2017 AVG
Hain $0.99 $1.07 $1.16 $1.25 $1.35 $1.46growth 1.08 1.08 1.08 1.08 1.08 1.08UN $21.39 $22.20 $23.05 $23.92 $24.84 $25.78growth 1.04 1.038 1.038 1.038 1.038 1.038Net $22.38 $23.27 $24.20 $25.17 $26.19 $27.24growth 1.040 1.040 1.040 1.040 1.040 0.765
Hain $0.39 $0.42 $0.45 $0.49 $0.53 $0.57growth $1.08 $1.08 $1.08 $1.08 $1.08 $1.08UN $17.38 $18.05 $18.73 $19.45 $20.19 $20.96growth 1.04 1.038 1.038 1.038 1.038 1.038Net $17.77 $18.46 $19.18 $19.93 $20.71 $21.53grow 1.039 1.039 1.039 1.039 1.039 1.039
Hain $0.00 $0.54 $0.56 $0.58 $0.60 $0.63growth 1.04 1.04 1.04 1.04 1.04UN $25.51 $26.49 $27.49 $28.54 $29.63 $30.76growth 1.04 1.038 1.038 1.038 1.038 1.038Net $25.51 $27.02 $28.05 $29.12 $30.23 $31.38growth 1.059 1.038 1.038 1.038 1.038 1.042
$65.66 $68.76 $71.44 $74.23 $77.13 $80.151.047 1.039 1.039 1.039 1.039 1.041
$2.02growth 1.36
$66.73growth 1.00
UN total revenue 2013
Hain total revenue 2013
United States
Canada & Europe
Asia/AMET/RUB
Total revenueYOY growth
Revenue Growth by Geographic Region (with 36% expansion of Hain into Asia/AMET/RUB markets)
Asia/AMET/RUB 40% United States 72%
The Americas 33% United Kingdom 14%Europe 27% Canada & Europe 14%
Unilever % Sales by
LocationHain % Sales by Location in billions USD Hain UN Consolidated %of UN Sales
United States $0.99 $21.39 $22.38 34%United Kingdom $0.19Canada & Europe $0.19Asia/AMET/RUB $0.00 $25.51 $25.51 39%
Total $1.38 $64.28 $65.66
2012 Revenue by Geographic Location
$17.38 $17.77 27%
AppendixC
2012 2013 2014 2015 2016 2017TV in Perpetuity
Revenue $64.16 $67.87 $71.14 $74.56 $78.14 $81.90growth (anticipated) 1.04 1.048 1.048 1.048 1.048 1.048Revenue $64.16 $67.87 $72.49 $77.43 $82.70 $88.33growth (+2% over anticipated) 1.04 1.068 1.068 1.068 1.068 1.068Revenue $64.16 $67.87 $70.46 $73.14 $75.93 $78.82growth (no change over avg.) 1.04 1.038 1.038 1.038 1.038 1.038
CGS $40.52 $43.90 $47.57 $51.54 $55.84 $60.50growth (anticipated) 1.08 1.083 1.083 1.083 1.083 1.083Operating Exp $12.66 $11.56 $10.55 $9.64 $8.80 $8.04growth (anticipated) 0.91EBITDA $10.98 $12.41 $13.02 $13.38 $13.51 $13.37 $178.25realized growth 1.130 1.049 1.028 1.009 0.990EBITDA $10.98 $12.41 $14.37 $16.26 $18.07 $19.80 $264.02realized growth 1.130 1.158 1.131 1.111 1.096EBITDA $10.98 $12.41 $12.34 $11.97 $11.29 $10.29 $137.16realized growth 1.130 0.994 0.970 0.943 0.911PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697
PV of Cash Flow $10.98 $11.54 $11.26 $10.77 $10.12 $9.32 $124.24PV of Cash Flow $10.98 $11.54 $12.43 $13.09 $13.53 $13.80 $184.02PV of Cash Flow $10.98 $11.54 $10.67 $9.63 $8.46 $7.17 $95.60 Net Change
DCF $177.25 $79.71DCF $248.42 $150.87DCF $143.08 $45.54
Unilever-Hain DCF (with expansion of Foods & Refreshments Product Lines)
1.27
Notes & Assumptions:
Revenue for 2013 includes annual data for UN with addition of target product segments.
Anticipated growth rate reflects 1% growth over previous growth avg.
AppendixCUN Product
CategoryProduct / Growth by
Company2012 2013 2014 2015 2016 2017 AVG
Hain Grocery / Fresh Prod. $0.95 $1.03 $1.11 $1.20 $1.30 $1.40growth 1.08UN Foods $17.96 $18.65 $19.36 $20.10 $20.86 $21.66growth 1.04Net $18.92 $19.68 $20.47 $21.30 $22.16 $23.06YOY growth 1.040 1.040 1.040 1.040 1.041 1.040
Hain Tea / Snacks 0.32 0.34 0.37 0.40 0.43 0.47growth 1.08UN Refreshments 12.19 12.65 13.14 13.64 14.16 14.70growth 1.04Net 12.51 13.00 13.51 14.04 14.59 15.16growth 1.039 1.039 1.039 1.039 1.039 1.039
Hain Pers. Care $0.11 $0.12 $0.13 $0.14 $0.15 $0.16growth 1.08UN Pers. Care $22.46 $23.31 $24.20 $25.12 $26.08 $27.07growth 1.04Net $22.57 $23.43 $24.33 $25.26 $26.23 $27.23growth 1.038 1.038 1.038 1.038 1.038 1.038
UN Home Care 11.55 11.99 12.45 12.92 13.41 13.92growth 1.04
$65.54 $68.09 $70.75 $73.51 $76.39 $79.371.039 1.039 1.039 1.039 1.039 1.039
Refreshment
Personal Care
Home Care
Total RevenueYOY Growth
Growth by Product Category
Foods
Category % Sales Value Net Value Category % Sales ValueGrowth (in current
revenues)Grocery 68% $0.94Fresh Products 1% $0.01Tea 8% $0.11Snacks 15% $0.21Personal Care 8% $0.11 $0.11 Personal Care 35% $22.46 .05%
Home Care 18% $11.55
Total Revenue $1.38 Total Revenue $64.16
Revenue by Product Category
Unilever
$0.32
HAIN
5%
3%
Foods
Refreshment
28%
19%
$17.96
$12.19
$0.95
AppendixD
2012 2013 2014 2015 2016 2017TV in Perpetuity
Revenue $64.16 $66.71 $69.59 $72.59 $75.72 $78.98growth (anticipated) 1.04 1.043 1.043 1.043 1.043 1.043Revenue $64.16 $66.71 $70.92 $75.40 $80.15 $85.21growth (+2% over anticipated) 1.04 1.063 1.063 1.063 1.063 1.063Revenue $64.16 $66.71 $69.26 $71.89 $74.63 $77.47growth (-0.5% under anticipated) 1.04 1.038 1.038 1.038 1.038 1.038
CGS $40.52 $43.90 $47.57 $51.54 $55.84 $60.50growth (anticipated) 1.08Operating Exp $12.66 $12.13 $11.63 $11.16 $10.70 $10.26growth (anticipated) 0.96EBITDA $10.98 $10.68 $10.39 $9.90 $9.18 $8.23 $109.67realized growth 0.972 0.973 0.953 0.928 0.896EBITDA $10.98 $10.68 $11.72 $12.71 $13.62 $14.46 $192.79realized growth 0.972 1.098 1.084 1.072 1.062EBITDA $10.98 $10.68 $10.05 $9.20 $8.10 $6.72 $89.63realized growth 0.972 0.942 0.915 0.880 0.830PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697
PV of Cash Flow $10.98 $9.93 $8.99 $7.97 $6.88 $5.73 $76.44PV of Cash Flow $10.98 $9.93 $10.14 $10.23 $10.20 $10.08 $134.37
PV of Cash Flow $10.98 $9.93 $8.70 $7.41 $6.07 $4.69 $62.47 Net Change
DCF $115.93 $18.39DCF $184.95 $87.41DCF $99.25 $1.71
Unilever-Hain DCF (with expansion of Personal Care Product Lines)
0.11
Notes & Assumptions:
Revenue for 2013 includes annual data for UN with addition of target product segments
Anticipated growth rate reflects 0.5% growth over previous growth avg.
AppendixDUN Product
CategoryProduct / Growth by
Company2012 2013 2014 2015 2016 2017 AVG
Hain Grocery / Fresh Prod. $0.95 $1.03 $1.11 $1.20 $1.30 $1.40growth 1.08UN Foods $17.96 $18.65 $19.36 $20.10 $20.86 $21.66growth 1.04Net $18.92 $19.68 $20.47 $21.30 $22.16 $23.06YOY growth 1.040 1.040 1.040 1.040 1.041 1.040
Hain Tea / Snacks 0.32 0.34 0.37 0.40 0.43 0.47growth 1.08UN Refreshments 12.19 12.65 13.14 13.64 14.16 14.70growth 1.04Net 12.51 13.00 13.51 14.04 14.59 15.16growth 1.039 1.039 1.039 1.039 1.039 1.039
Hain Pers. Care $0.11 $0.12 $0.13 $0.14 $0.15 $0.16growth 1.08UN Pers. Care $22.46 $23.31 $24.20 $25.12 $26.08 $27.07growth 1.04Net $22.57 $23.43 $24.33 $25.26 $26.23 $27.23growth 1.038 1.038 1.038 1.038 1.038 1.038
UN Home Care 11.55 11.99 12.45 12.92 13.41 13.92growth 1.04
$65.54 $68.09 $70.75 $73.51 $76.39 $79.371.039 1.039 1.039 1.039 1.039 1.039
Refreshment
Personal Care
Home Care
Total RevenueYOY Growth
Growth by Product Category
Foods
Category % Sales Value Net Value Category % Sales ValueGrowth (in current
revenues)Grocery 68% $0.94Fresh Products 1% $0.01Tea 8% $0.11Snacks 15% $0.21Personal Care 8% $0.11 $0.11 Personal Care 35% $22.46 .05%
Home Care 18% $11.55
Total Revenue $1.38 Total Revenue $64.16
Revenue by Product Category
Unilever
$0.32
HAIN
5%
3%
Foods
Refreshment
28%
19%
$17.96
$12.19
$0.95
AppendixE
2012 2013 2014 2015 2016 2017TV in Perpetuity
Revenue $64.16 $66.60 $69.14 $71.77 $74.51 $77.35Growth 1.04CGS $40.52 $43.90 $47.57 $51.54 $55.84 $60.50Growth 1.08Operating Exp $12.66 $12.35 $11.84 $11.36 $10.89 $10.44intended growth 0.96 0.98 0.96 0.96 0.96 0.96Operating Exp $12.66 $12.28 $11.77 $11.29 $10.82 $10.38limited growth 0.96 0.97 0.96 0.96 0.96 0.96Operating Exp $12.66 $12.66 $12.13 $11.63 $11.16 $10.70aggressive growth 0.96 1.00 0.96 0.96 0.96 0.96EBITDA $10.98 $10.35 $9.73 $8.88 $7.78 $6.41 $85.45Realized Growth 0.94 0.94 0.91 0.88 0.82EBITDA $10.98 $10.43 $9.80 $8.95 $7.85 $6.47 $86.32Realized Growth 0.95 0.94 0.91 0.88 0.82EBITDA $10.98 $10.05 $9.44 $8.60 $7.52 $6.15 $82.04Realized Growth 0.91 0.94 0.91 0.87 0.82PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697
PV of Cash Flow $10.98 $9.63 $8.42 $7.15 $5.83 $4.46 $59.52PV of Cash Flow $10.98 $9.70 $8.48 $7.21 $5.88 $4.51 $60.13
PV of Cash Flow $10.98 $9.34 $8.17 $6.93 $5.63 $4.29 $57.15 Net Change
DCF $95.01 -$2.54DCF $95.90 -$1.64DCF $91.50 -$6.04
Unilever-Hain DCF (with Cost Synergy for growth in Operating Expenses)
Increase in marketing and advertising budgets for Hain subsidiaries will represent a 2% growth in
Unilever Operating Expenses (Increase from 4% to 15.9% of total sales from Hain)
Notes & Assumptions:
AppendixF
$97.55 Adjusted for Hain % Change
Best Case $219.90 $218.02 2.235Anticipated $128.48 $126.60 1.298
Worst Case $43.36 $41.48 0.425Best Case $248.42 $247.15 2.534Anticipated $177.25 $175.98 1.804Worst Case $143.08 $141.81 1.454Best Case $184.95 $184.84 1.895Anticipated $115.93 $115.82 1.187Worst Case $99.25 $99.14 1.016Best Case $95.90 $95.90 0.983Anticipated $95.01 $95.01 0.974
Worst Case $91.50 $91.50 0.938
$128.35Consolidated Value of Synergies
Summary of Value of Synergies
Entering Value
Global Footprint
Expansion of Foods & Refreshments
Expansion of Personal Care
Cost Associated with Expansion of Hain Marketing & Advertising
$97.55$30.81$128.35$3.278$2.75 $3.62
Cash $1.09Stock $2.53
Cash & Equivalents On HandCurrent Value of HainOffer Price
Structure
Final Valuation & OfferCurrent Value of UnileverValue Added Through AcquisitionPost-Acquisition Value
All values in billions USD 1 EUR = 1.33 USD
EBITDA Multiple (HAIN): 13.1WACC* for HAIN: 7%Given Value of HAIN: $2.75 EBITDA Multiple (UN): 13.575WACC* for UN: 7.50%Current Value of UN: $97.55Assessed Value of UN: $128.35HAIN Relative Size 3%*From wikiwealth.com
Notes & Assumptions: